Benefits & Compensation News

Differences between public and private exchanges [Graphic]

When the individual coverage portion of the Affordable Care Act kicks in next year, most employers say they won’t stop offering health insurance and send workers to the state (or public) exchange. However, many are apparently looking at private exchanges as a possible option.

In fact, 56% of employers now say they’d consider offering coverage through a private exchange, which is more than three times the amount of employers that said the same thing just one year ago. That’s according to a new study by Mercer.

Public health exchanges are those that will be offered either by individual states or the federal government (in those cases in which states fail to establish their own exchange) starting in 2014, as required by the Affordable Care Act. Private exchanges (sometimes called marketplaces or intermediaries), on the other hand, are run by private-sector organization — e.g., Mercer’s Exchange Suite — and work directly with carriers to offer health insurance.

The folks over at Mercer have put together the following detailed infographic on the exchanges, which provides info on:

  • differences between public and private exchanges
  • the benefits of the exchanges for both employers and employees, and
  • the trend in defined-contribution health care offerings.

Warning: You’ll want to take the info Mercer’s provided below with a grain of salt. Since the company’s offering a private exchange option of it’s own, it’s likely the info is slanted in favor of private exchanges. That being said, however, the graphic does offer some good info on the key differences between the exchanges.


Via: Mercer

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